04/06/2022 09:00 AM Senate FINANCE

SENATE BILL NO. 239                                                                                                           
                                                                                                                                
     "An  Act approving  and ratifying  the sale  of royalty                                                                    
     oil  by the  State of  Alaska to  Petro Star  Inc.; and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
9:03:04 AM                                                                                                                    
                                                                                                                                
Senator Wilson discussed the fiscal note associated with                                                                        
the bill. He read from the analysis:                                                                                            
                                                                                                                                
     This bill  provides legislative approval of  a contract                                                                    
     negotiated between the State  of Alaska and Petro Star,                                                                    
     Inc.  for the  sale of  the state's  royalty oil  for a                                                                    
     term  of five  years.  The agreement  provides for  the                                                                    
     following barrels per day:                                                                                                 
          years 1 and 2: 12,500                                                                                                 
          years 3 through 5: 10,000                                                                                             
     The  number  of barrels  per  day  is multiplied  by  a                                                                    
     negotiated Royalty  In Kind differential per  barrel to                                                                    
     arrive at the expected  revenue increase. There will be                                                                    
     no  fiscal impact  to the  operating expenditures.  The                                                                    
     proposed  contract  is  expected  to  generate  between                                                                    
     $17.4  million   and  $19.7  million  in   revenues  in                                                                    
     addition to  the amount that would  have been collected                                                                    
     if the  royalty oil sold  under this contract  had been                                                                    
     disposed of in value.                                                                                                      
                                                                                                                                
9:04:29 AM                                                                                                                    
                                                                                                                                
Senator von Imhof  MOVED to REPORT SB 239  out of committee.                                                                    
There being no objection it was so ordered.                                                                                     
                                                                                                                                
SB 239  was REPORTED out  of committee with three  "do pass"                                                                    
recommendations,  three "no  recommendation" recommendations                                                                    
and  with  one  previously  published  fiscal  impact  note:                                                                    
FN1(DNR).